Question

1.

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, what is the definition of income?

Multiple Choice

Top of Form

Inflow of resources with future economic benefit

Increase in equity (other than from transactions with owners)

Assets minus liabilities

Revenue minus expenses

Bottom of Form

2.

The IASB has permitted the translation of International Financial Reporting Standards (IFRS) into how many languages?

Multiple Choice

Only six languages: Chinese, English, German, Japanese, Russian, and Spanish

More than 100

None. They are only written in the official language of the IASB.

More than 30

3.

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, which of the following is NOT required for asset recognition?

Multiple Choice

Ownership of the resource

Control of the resource

Future economic benefits

Reliable measurement of the cost or value of the resource

4.

What is effective control?

Multiple Choice

Assets bought and paid for with Account Receivables.

Controlling a majority of voting shares of the subsidiary’s stock.

Effective control is control over a subsidiary exercised through means other than controlling a majority of voting shares of the subsidiary’s stock.

Assets bought and paid for with Cash.

5.

Harmonization of accounting standards:

Multiple Choice

refers to the reduction of alternatives while retaining a high degree of flexibility in accounting practices.

always ensures resulting of comparable financial statements internationally.

is the same as convergence of accounting standards.

forces accounting differences to be resolved through litigation.

Answer 1

1.) Definition of income is Revenue minus Expenses.

Correct answer is option 4.

2.) The IASB has permitted the translation of International Financial Reporting Standards (IFRS) into more than 30 languages.

Correct answer is option 4.

3.) According to the Framework for Preparation and Presentation of Financial Statements of the IASB, ownership of resource is NOT required for asset recognition.

Correct answer is option 1.

4.) Effective control is Controlling a majority of voting shares of the subsidiary’s stock.

Correct answer is option 2.

5.)  Harmonization of accounting standards refers to the reduction of alternatives while retaining a high degree of flexibility in accounting practices.

Correct answer is option 1.